Russia’s swift actions in Crimea have again put the focus on Europe’s energy supply issues. Russia supplies nearly 30 percent of Europe’s gas, and most of this passes through transport lines that transverse Ukraine. The subsequent sanctions imposed on Russia by United States and EU were more focused on targeted individual sanctions rather than sanctions on the whole country. The Russian Foreign Ministry has labeled these sanctions as “divorced from reality” and stated they have had no effect on the oil industry.
As countries grow and develop, one of their biggest challenges is establishing ways to maintain growth. This means constantly improving and remodeling the global energy system. In order to assess these global challenges, the World Economic Forum has developed the New Energy Architecture Initiative. In a world where all types of boundaries are slowly fading away, it has never been so imperative to understand the changes that are part of our everyday lives. Countries' individual energy architectures have different demands and that, along with the omnipresent dilemmas of economic growth versus environmental sustainability versus energy access, encompasses the center of this analysis.
Disquiet over Europe’s reliance on energy from Russia has intensified efforts to find new suppliers. The politicization of energy security in Europe has diverted parties from the threat posed by a continued reliance on hydrocarbons.
Foreign agents bent on bringing down the United States obtain a thumb drive, which obtains a complicated computer code. This code, when the drive is inserted into a computer connected to the electrical grid, crashes the system and sends major U.S. into waves of rolling blackouts.
This is the plot of Gridlock, the latest novel by former Senator Byron Dorgan (D-ND) and David Hagberg, but it could well be a real-life scenario brought on by an attack on the United States.
The Diplomatic Courier sat down with Senator Dorgan to discuss Gridlock and the issues that informed and inspired the novel.
Developing countries will contribute significantly to global prosperity and peace only if they can access sufficient quantities of affordable energy.
Global improvement in living standards, increased political stability and conflict avoidance depend on achieving economic progress in developing countries. They are rising fast in aggregate world GDP share and will pass the developed countries by 2030.
Since the Rogun Dam project was first conceived in the 1970s, its progress has undergone a series of delays, denying Tajikistan the honor of building the tallest hydroelectric dam in the world and, more importantly, denying the Central Asia region a supply of cheap, sustainable energy.
One of a slew of Soviet-era hydroelectric power plants, construction on the project stopped in the early 1990s following the collapse of the Soviet Union. More recently, plans for Russia to provide funding for the project unraveled as the Tajik government opted to diversify the ownership of its hydroelectric industry and move away from the Russian investment.
Currently, construction at Rogun is on hold while a series of World Bank-funded studies are conducted into Rogun’s potential ecological, environmental and socio-political impact on the region.
In her new book, Green Innovation in China: China’s Wind Power Industry and the Global Transition to a Low Carbon Economy, Dr. Joanna Lewis, Assistant Professor at Georgetown University explores the rapid growth in China’s wind technology in the past 10 years, and launched the book at the Wilson Center with a panel discussion on the topic of green innovations and wind technology advances in China that could potentially strengthen U.S.-China collaboration in green technology.
Clean energy is currently a $60-70 billion dollar industry in China, and wind energy in particular is the third largest electricity source in China. Hence, wind energy in China is a perfect example of how investments in clean energy, proper policy support, and technology transfer from foreign firms can result in a success story for the renewable energy industry. In the panel discussion, Dr. Lewis analyzed three models of technology transfer: licensing; mergers and acquisitions; and joint development.
With its high poverty levels and low degree of industrialization, Africa arguably faces the largest development gap of any region. Beyond the usual misery indices and welfare evaluation metrics, we have fundamental challenges that impede meaningful sustainable development. Energy is an incontrovertible challenge across sub-Saharan Africa (SSA).
Data from the World Bank and International Energy Agency (IEA) on energy poverty does not make for good visuals. Two out of three of SSA households—585 million people—live without electricity. In stark contrast, 99 percent of North African households have electricity supply. Only 14 percent of rural SSA households are linked to the grid. This compares unfavorably with Latin America where 74 percent of rural households are connected to power. The figures mask a more disturbing fact about electricity supply in most SSA countries: a high frequency of blackouts and unstable power supply. The World Bank estimates that SSA households experienced 91 days of blackouts in 2007.
India is caught between the consequences of provoking a United States driven by its fixation upon the Iranian nuclear program and by an Iran that is a major supplier of oil, providing India with access to its vital interests in Afghanistan. The best that the Indians can do is to play for time until the Americans leave the region.
U.S. Secretary of State Hillary Clinton announced on March 21st that ten member countries of the European Union as well as Japan were to be rewarded with exemptions for complying with the American sanctions imposed upon Iran. India was not included and did not seek a waiver. Seeking a waiver would have granted legitimacy to the American law.
Indian Foreign Secretary Rajan Mathai supports the United Nation sanctions that he believes are upheld by international law, while he rejects the authority of the United States to impose its domestic laws upon sovereign foreign nations. That was his public stand in February, but Nancy Powell, Ambassador-designate to India, told a Congressional committee that the Foreign Secretary disclosed during his visit to Washington that India would reduce Iranian crude from 12 to 10 percent of imports.
The Saudis are making promises intended to convince Americans and Israelis that they have no reason to worry about the price and supply of oil. They are hoping that their pledges will encourage someone else to remove the leaders of Iran before Iran displaces the United States in the region.
Should there be a conflict with Iran, Saudi prince Ali al-Naimi pledged early in February that the price of oil would not exceed US$100 per barrel. He was speaking of West Texas Intermediate , which is an isolated American market. At the time, WTI was trading at just under $100 while Brent Crude, which makes up 60 percent of the world oil market, was trading $20 higher.
Six weeks after the Prince made the pledge on CNBC, he said at a forum of petroleum ministers in Kuwait that the current price near $125 for Brent Crude was not justifiable. He continues to stress that Saudi Arabia alone and in conjunction with other producers can satisfy any and all market demands.
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